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Old 02-08-2007, 04:35 AM
 
Location: WPB, FL. Dreaming of Oil city, PA
2,909 posts, read 12,989,864 times
Reputation: 991

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Can you really save 20-50+% buying a forclosure house?

I checked one website and those prices were shocking! I am not linking you and besides im not registered(they want $9.95 a week) I will register when I have my $50k for a house or if my parents want to buy one of those bargin houses. I saw a $25k house in Port Saint Lucie. Its only 2/1 and 900 square feet but for that price, its an amazing deal. I dont know any further details or what the house looks like, unregistered guests only get a "preview"

Lots of good deals in Texas. Dallas has 5 Bed, 3 Bath 1,737 feet for a special of $50k. Another one, also $50k is 3 Bed, 2.5 Bath 2,625 feet. Irving has a 4 Bed, 2 Bath 2,550 feet for $25k

Too bad even the forclosure prices in Palm Beach County are still high. Theres a tiny 784 1/1 shack for $109k, no thanks. Ok found a 1,868 3/2 for $60k, I bet its in poor condition and the repair costs would be another $60k and itll take several months of time too.

I am amazed how cheap some of the forclosures in CA are. In La Jolla theres one at $40,716 for 736 feet, 2/1. I bet the land alone is worth alot more! Who cares what condition the house is in for that price!

I checked Parkersburg WV and the prices arent really any lower than I can get one from "by owner" so its not a good deal.

Anyway who here bought a forclosure and how much did you save in percent and dollars? If this isnt too good to be true about that example in LA Jolla, id love to move there, I hear its a good location That PSL deal is also great.
Lots of good deals in Texas as well. If regular price is $150k for a nice big new 4 bedroom house, a forclosure could be $75k at 50% off making it worth it for me

1. Right now a lot of people are being forclosed because they got all those crazy mortgages that they can't afford now. Is that why theres so many cheap forclosures?
2. Is it true you cant always look inside a forclosed house? If I cant, I will only bid below land value and they will lose out.
3. Someone else said never had to buy one without seeing it though! Who here bought sight unseen?
4. Most forclosed houses need TLC, can they still be a great deal? I assume those $50k houses I mentioned above need TLC or they could just be torn down if the land value is significently higher

Last edited by Need_affordable_home; 02-08-2007 at 04:45 AM.. Reason: questions
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Old 02-08-2007, 01:10 PM
 
Location: Illinois
250 posts, read 868,134 times
Reputation: 163
No, it's not to good to be true. You pay the bank what is still owed on the house. For example if the owners didn't pay their mortgage for three months and went into forclosure, the bank will sell it for the cost of those 3 months plus anything owned on the house. So if the owners only owe $25,000 that is what the house will sell for.

But I will forewarn you, be careful. In most cases there is no opportunity for you to view the house you are about to buy. In many cases the owners get ticked that they are being forclosed on and completely trash the house. In other words, you never know what you are getting. It can be a sticky situation.
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Old 02-08-2007, 01:23 PM
 
Location: Near Charlotte, NC
405 posts, read 1,147,744 times
Reputation: 192
It's not as easy as they would have you believe. Years ago I would go to the steps of the courthouse with my father and uncle. The city would auction the foreclosures on the spot. You needed cash - a suitcase full, to be exact. And at times my uncle would give the other prospective bidders $5k in cash not to bid on something he really wanted. And that was 20 years ago.

Today it is big business. And just like everything, the big players have it all sewed up. The mortgage holders even bid on their own properties, and have a crew ready to start the repairs. You will never get something worth $100k for only the 25k owed the mortgage company - not in this lifetime. And anyone who is willing to sell you a 'listing' of foreclosures is only taking your money. The information is available for free at any courthouse.

This is just another example of something that the 'average Joe' has been closed out of.

Like I said - my family did it for years. I know what I speak of.
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Old 02-08-2007, 01:41 PM
 
3,020 posts, read 23,620,633 times
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You might save something but way too many of those ads look like come on's. For sure they are making money selling public information and presenting as some type great find.

The general rule is "If it seems too good to be true, it probably is".

I know the so-called foreclosed houses I have looked at local in the Monroe county area are no bargains. Usually there is some sort of catch, one particular house was hawked around but nobody would bite.

After awhile they tried to auction it off but claimed there was some sort of "Reserve" that had to be met. In the end, supposely the bank allowed it to be torn down because the land was more valuable as a parking lot instead of a house. Nobody seemed to have the straight story.

From what I know about most of those type situations, the real estate type people already have it wired if there is any type of realized value to be had. I am seeing that in those so called auctions too.
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Old 02-08-2007, 01:58 PM
 
Location: PA
669 posts, read 2,945,173 times
Reputation: 278
Oh great. Another bright idea!

Don't buy a foreclosed home. As mentioned, you will not see the home at all. They're cheap for a reason -- in a lot of cases yes, they will be trashed. You'd never know. You'd blow all your money on something you don't see til you own it. Move on to plan 10000 now, NAH.
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Old 02-08-2007, 02:11 PM
 
Location: Near Charlotte, NC
405 posts, read 1,147,744 times
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Oh, btw - the main reason my family used to buy foreclosed homes was that both my father and uncle had General Contractors licenses and could do any work or repairs needed themselves. And they had good contacts for inexpensive materials.
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Old 02-08-2007, 02:30 PM
 
Location: Midwest
6,739 posts, read 8,724,332 times
Reputation: 16513
I know some men who buy houses in my town, usually foreclosed houses. They get them cheap, but the repairs needed cost alot of money.

So, you could save money getting a foreclosure, but in the end it would cost tons of money to fix up and be liveable.

Save up as much as you can. That's what Me and my hubby did......

You can buy a house with no or very lil money down. You have to have purdy good credit. A decent job, etc. It's possible, but don't try and buy out of your means. Again, save up......
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Old 02-08-2007, 04:36 PM
 
Location: in my imagination
11,401 posts, read 18,603,087 times
Reputation: 7935
so what Im gathering is.....so much for those going whoohoo!! to the guessimates about all the foreclosures supposedly coming up..
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Old 02-08-2007, 04:47 PM
 
Location: Missouri
6,047 posts, read 21,651,948 times
Reputation: 5052
My grandparents bought a house at a sheriff's sale perhaps 5 years ago, and got a really good deal. The property addresses were listed in the newspaper and a date was given as to when the auction would be. My grandfather has lived in the same area his entire life, and is very comfortable. He went to the address, and first he talked to the neighbors. He's very friendly and can talk to anyone. Then he went to the house and got in through the back door somehow. I do not recommend doing this! He looked around and the place was a bit trashed and needed some work, but he's a retired electrician, has helped build numerous houses, so he knew what to look for and he knew he'd be able to fix things up easily himself. They went to the auction and found it had been postponed. Lesson learned, so the next time they called a day in advance to make sure it was still on. They went; there were only a couple of people there, just a rep from the bank, the sheriff's deputies, and a few other folks. No one else bid. My grandparents got the house for a really good price, plus had to pay a bit of money to settle the dues owed to the lake association the house is in. It took them just over a year to find this house, as they were looking almost exclusively at foreclosures and sheriff's sales. At the time, they were renting. They had sold their home previously, which was completely paid off, and rented while they house-hunted. So overall it worked out really well. They did get frustrated with how time consuming it was, but it was worth it in the end and they are that much more financially comfortable in their retirement.
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Old 02-08-2007, 05:48 PM
 
Location: Springfield, Missouri
2,814 posts, read 12,074,093 times
Reputation: 2000001303
Quote:
Originally Posted by bmurphy View Post
Oh great. Another bright idea!

Don't buy a foreclosed home. As mentioned, you will not see the home at all. They're cheap for a reason -- in a lot of cases yes, they will be trashed. You'd never know. You'd blow all your money on something you don't see til you own it. Move on to plan 10000 now, NAH.
bmurphy...how about moving on? This is getting tiresome and you had agreed that you've gone overboard. Leave the man alone unless you have specific advice please. Your constant jabs aren't worthy of someone who initiates dozens of posts and expects decent and polite responses.
Whatever your beef is, how about letting it go? Please.
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